Reliance Communications which had earlier entered into a non-binding but exclusive discussion with Aircel to merge its wireless business with the latter, today extended the exclusivity period by 60 days until May 22, 2016, the company said in a press statement.
The telecom operator said that it is in talks with Malaysia’s Maxis Communications Berhad and Sindya Securities and Investments Private Limited–the shareholders of Aircel Limited. The talks however, excludes Reliance Communications towers and optical fibre network infrastructure for which the company is going ahead with the asset sale as announced on December, last year..
The objective of a potential merger would be “to mutually derive the expected substantial benefits of in-country consolidation, including opex and capex synergies and revenue enhancement,” said a statement by Reliance Communications.
RCOM Merger with MTS: This week, shareholders of Sistema Shyam Teleservices (SSTL), which owns the MTS brand in India have approved the merger of the company with Reliance Communications (RCOM) in a meeting convened by the Rajasthan High Court. The deal between RCom and SSTL is valued at around $690 million (~Rs 4,500 crore).
RCOM and Rjio partnership: In January, Reliance Communications (RCOM) and Reliance Jio (RJio) had entered into a strategic partnership to share spectrum to provide LTE services. RCOM and RJio had signed agreements in spectrum allotment in 800 MHz band across 9 Circles from RCOM to Reliance Jio. The companies also agreed to share spectrum in 800 MHz band across 17 Circles.
RCOM mobile internet connections: RCOM reported 37.2 million mobile Internet connections for the quarter ended September 30th 2015 (Q2FY16), up 5.08% from 35.4 million mobile Internet connections in the previous quarter, and 25.25% from the same quarter in 2014. RCOM’s 3G connection base stood at 19.1 million and accounts for 51.34% of all data connections. 3G connections were up 6.70% quarter-on-quarter and up 26.49% year-on-year. The 2G connection base also increased to 18.1 million, from 17.5 million in the previous quarter.
Similar developments from other players:
-In December 2015, The Department of Telecom had given a green signal to Vodafone to merge four of its Indian entities (Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink) into Vodafone Mobile Services (VMS)
-In September 2015, a MTNL and BSNL merger deal was set to be completed by December 2015; the deal never made it through.